During the first half of 2013 there there have 42 sales at the Honua Kai Resort and Spa year to date – 27 of these sales were original developer units. In 2012, there were a total of 83 sales – 80 of these sales were original developer units.

We are beginning to see a clear trend that the resale market has become far more prominent than it has in the past. Sales for this year are so far on track with those of last year, but it will be interesting to see how many of the developer contracts that are currently in escrow actually close this year.

There have been a total of 17 sales at Honua Kai since my last market update at Honua Kai: Honua Kai Real Estate Market Update May 2013. The lowest closing of 2013 was $419,900, the high was $4,450,000, the average sold price was $1,072,000, and the median was $775,000.

Honua Kai Sales Since May 1, 2013

As I mentioned above, there have been a total of 16 sales at Honua Kai since my last market update. 10 of the 16 sales were original developer units. Below is a list of all the closings during this time period:

Hokulani #724 – 1bed/1bath, 620 sq.ft. mountain view unit closed for $610,000 on 6.7.30 – this was a resale unit involving seller financing. I think it was a very good idea for the seller to carry the paper on this property considering that the most recent sale of a comparable unit at the time was the one that I sold for $525,000. I think it would have been very hard for the buyer to obtain the appraisal value that they would have needed in order to complete conventional financing. A few appraisers are catching on to the fact that we are in a rising market, but, unfortunately, not all.

Konea #218 – a mountain view unit with the slightest glimpse of the the ocean of 1,230 sq.ft. closing for $930,000 on 5.21.13 – this was a resale unit that sold to an all cash buyer. This property was on the market for almost 3 years in total and the seller originally paid $956,750 for this property in the spring of 2010. They originally priced the unit at $1,225,000 which illustrates the proven trend that initial pricing accuracy is of utmost importance.

Hokulani #536 – a two bedroom/two bath partial ocean view unit of 1,240 sq.ft. closing on $1,100,00o on 6.7.13 – this was an all cash resale transaction. I featured this property in a previous video blog: Honua Kai 2 Bedroom Partial Ocean View Unit Falling Out of Escrow. The seller paid $1,146,350 for the property in early 2009, but I think that they actually ended up a lot better than many Honua Kai sellers who bought at this higher price level during this time period would be if they had to sell now.

Konea #109 – a two bedroom/two bath inner courtyard ground floor unit of 1,315 sq.ft. closing for $1,225,000 on 5.15.13 – this was a resale unit involving conventional financing. The sellers of this unit took a really huge financial hit and I really feel for them as they paid $1,650,750 in the spring of 2010. This illustrates the point I made about the sale Hokulani #536 above.

Hokulani #745 – a two bedroom/two bath ocean view unit closing for $1,225,000 on 5.31.13 – this was a resale unit closing to an all cash buyer. Once again, I feel really bad for this seller as they took a huge hit by paying $1,771,350 in early 2009.

Hokulani #211 – a two bedroom/two bath inner courtyard partial ocean view (see pic above) of 1,100 sq.ft. closing for $1,285,000 on 6.24.13. This was a developer sale and I represented the buyer on this transaction involving conventional financing as they contacted me after reading my extensive blog series at Honua Kai.

Hokulani #549 – a two bedroom/two bath 1,100 sq.ft. ocean view unit closing for $1,340,000 on 6.10.13 – this was a developer sale involving an all cash buyer.

Observations from 15 Resale Units YTD

I am only going to discuss this trend for the 2013 resale properties as all of the developer units have recorded at their asking prices with 2 years of HOA fees being covered by means of a cash credit at closing to be applied to all allowable buyer closing costs.

For the year to date sales in 2013, the highest days on market for a property was 916 days on market (see Konea #218 above under closings), the lowest was 52 days on market, the average was 188 days on market, and the median was 105 days on market. All of these properties include the escrow time period so figure 45-60 days for your typical escrow with a purchase involving financing.

Sellers are getting on average 93.57% of sold price versus the last listed price before the property goes under contract. Contrast this with 91.71% of sold price versus the original listed price of the property, there were only two properties of this group that actually had price reductions before going under contract.

Really the only unit that threw of the listed price vs. original price illustration was Konea #218, which was originally listed at $1,225,000 and closed for $930,000 after almost 3 years on the market. I tossed the sale of Konea #610 from this sample set because they actually increased their listed price from $649,000 to $669,750 and eventually closed at $647,500.

In conclusion, the split between cash and financed transactions in all of Honua Kai 2013 YTD is roughly 48% cash and 52% financing.

2 Resale Units Under Contract Right Now

As of today, there are currently two resale one bedroom units currently under contract at this time.

Konea #224 – a one bedroom/one bathroom unit of 750 sq.ft. with a mountain view currently listed at $649,000. The seller of this property paid $553,800 for this property in late 2010, so I am thinking that they will likely be making a profit on this sale. This property went under contract after about 5 months on the market.

Konea #210 – a one bedroom/one bathroom unit of 730 sq.ft. with a mountain view currently listed at $675,000. The seller of this property paid $676,450 in the spring of 2010, so it is likely that they are loosing some money on their investment after closing costs. I have a client who purchased Konea #410 (2 floors up from this unit) for a little over $500k right after they did the first round of major developer price reductions at Honua Kai in the summer of 2011. Furthermore, Konea #610 closed at the end of last month at $647,500. Timing is everything in real estate.

The picturesque mountain view from Konea #110

Newest Listings at Honua Kai

The developer input about 10 of their existing inventory into the MLS, but I won’t count these as new listings as they have been on the market for a while.

Price Reductions at Honua Kai

The outstanding view from the living room of Hokulani #741

The sellers of Hokulani #741 have reduced their price from $1,985,000 to its present listing price of $1,830,000. This is a larger two bedroom/two bath unit of 1,320 sq.ft. and has an outstanding floor plan which is quite rare in the resort, but allows it to have absolutely outstanding views from the kitchen, living area, and outdoor covered lanai which is about 500 sq.ft.

Services as Buyer’s Agent

Please do reach out to me regarding any questions at Honua Kai. I have the complete list of all available developer inventory, I have many videos of units actively for sale both resales and developer inventory, and I provide excellent service to all of my buyer clients in terms of thorough education and solid representation.

Honua Kai Sellers

I have done extensive market research on Honua Kai and feel very confident in my ability to pinpoint very accurate values for your property. Maybe you would like to consider selling your unit to transition to another property at Honua Kai, or to accomplish other goals? I can help you get there.

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My Blog Series on Honua Kai Condos

Honua Kai Resort in Kaanapali, Maui – Start here, as this blog will provide you with a good overview of the resort including video on its location, and its world class amenities and ownership offerings.